Extra Mortgage Payment Calculator — See Years Saved & Interest Avoided

Why Your Extra Payment Is More Powerful Than You Think

Every dollar you pay above your minimum mortgage payment goes directly to reducing your principal balance. And because mortgage interest is calculated on your remaining principal, reducing that balance faster means you pay less interest every single month going forward.

Here's the number that shocks most homeowners: on a $280,000 mortgage at 6.5% with 28 years remaining, paying just $200 extra per month saves you over 6 years of payments and more than $60,000 in interest. That's real money going back to you instead of the bank.

How to Find Your Numbers

Your remaining balance and interest rate are on your most recent mortgage statement. If you don't have it handy, log into your lender's online portal — they're usually on the home screen. Your remaining years are simply your original loan term minus how long you've been paying.

Strategies to Free Up Extra Money

You don't need a windfall to pay extra. Small consistent amounts make a massive difference over time:

• Round up your payment. If your payment is $1,847, pay $2,000. The $153 difference adds up fast.
• Make one extra payment per year. Split your monthly payment by 12 and add that amount each month — you'll make a full extra payment annually.
• Apply windfalls directly. Tax refunds, bonuses, and gifts applied to principal can shave years off your mortgage instantly.
• Refinance and keep paying the old amount. If you refinance to a lower rate but keep paying your original payment amount, the difference goes to principal.

One Important Note

Before making extra payments, confirm your mortgage has no prepayment penalty — most modern mortgages don't, but it's worth checking your loan documents. Also make sure extra payments are applied to principal, not future payments — specify this when paying online or call your servicer.